James Cropper (CRPR) H2 2024 earnings summary

Executive summary

• Revenue declined 21% year-over-year to £103.0m, mainly due to weak demand in Paper & Packaging and a slowdown in hydrogen fuel cell markets.

• Adjusted profit before tax fell 75% to £0.8m, with a statutory pre-tax loss of £5.3m, reflecting restructuring costs and a £4.4m impairment in Paper & Packaging.

• The business underwent significant restructuring, combining Paper and Colourform into a single division, reducing headcount by 15%, and streamlining operations to improve efficiency.

• No final dividend proposed; total dividend for the year is 3.0p per share, down from 6.0p last year.

Financial highlights

• Group revenue: £103.0m (down from £129.7m year-over-year).

• Adjusted EBITDA: £6.6m (prior year: £9.0m); margin 6.4%.

• Adjusted operating profit: £2.0m (prior year: £4.8m); margin 1.9%.

• Statutory loss before tax: £5.3m (prior year: profit £1.3m).

• Basic and diluted loss per share: (41.8p) (prior year: 5.4p EPS).

• Net borrowings: £15.5m (down from £16.6m).

• Capital expenditure: £3.8m (down from £5.8m).

Outlook and guidance

• FY2025 trading to date is in line with Board expectations.

• Input costs (pulp and energy) remain high, but order intake in Paper & Packaging shows signs of recovery.

• Advanced Materials pipeline is strong, with mid-term growth expected in Energy Solutions and Composite Solutions.

• Board remains confident in a return to growth in key markets.